Zamil unit lands SAR 575 mn contract to build defense systems complex

Zamil Steel Construction (ZSC) has landed an SAR 575 mn contract with the Riyadh-based SAMI CMI DefenceSystems to develop an industrial complex for manufacturing defense systems in Al Kharj, ZSC parent company said in a Tadawul filing on Sunday.

The project: Under the 16-months contract, Zamil will be responsible for the construction of the SAMI LAND industrial complex which will develop, design, and manufacture land defense systems, the statement reads.

Market reax:Zamil’s parent company closed up 3.7% to SAR 22.4 at yesterday’s close.

About the companies: ZSC is a subsidiary of Tadawul-listed Zamil Industrial Construction Company, while SAMI CMI Defence Systems is a JV between the Public Investment Fund’s wholly owned subsidiary Saudi Arabia Military Industries (SAMI) and the defense equipment manufacturing unit of Belgium’s John Cockerill Group. It’s one of 12 international JVs SAMI has set up.

The Kingdom is looking to localize 50% total spending on military equipment by 2030, and policymakers have earmarked some SAR 269 bn for military spending in the FY2024 budget in what Finance Minister Mohamed Al Jadaan said was part of a move to boost domestic manufacturing and regional regional deterrence power at the same time.

ADVISORS- Ghafari Associates are acting as the consulting firm responsible for the design of the complex, under an agreement signed in February.